The amount of net profit depends on two factors, one is the total profit, and the other is the income tax expense.
The calculation formula of net profit is:
Net profit = total profit-income tax expense.
Net profit is the final result of enterprise management. The more net profit, the better the operating efficiency of the enterprise.
If the net profit is small, the operating efficiency of the enterprise will be poor, which is the main index to measure the operating efficiency of the enterprise.
Audit should focus on:
(1) Whether the income confirmation and accounting of the term enterprise is true, complete and timely, whether it conforms to the provisions of the national financial accounting system, and whether there are problems such as false listing, multiple listing or overdraft of future income, omission, omission or transfer of current income.
(2) Whether the scope and standards of the costs and expenses during the term of office of the enterprise conform to the provisions of the national financial accounting system, whether the cost accounting is true and complete, and whether there are problems such as staggered, multi-listed, under-listed or omitted costs and expenses.
(3) Adjustment of operating results during the term of office.
If an enterprise has the problem of false operating results, it shall adjust the accounting data related to the enterprise according to the audit results, deduct the non-performing assets generated during its term of office, and re-prepare the adjusted accounting statements.
(4) Confirm the actual performance profit of the enterprise during its term of office.
The actual performance profit of the person in charge of the enterprise during his term of office is generally calculated according to the following formula:
Actual profit during the term of office = total profit after audit adjustment and verification (excluding non-performing assets generated during the term of office)+non-performing assets digested one year before the term of office.
I hope the above content can help you. Please consult a professional lawyer if you have any other questions.
Legal basis: Article 29 of the Detailed Rules for the Implementation of Economic Responsibility Auditing of Central Enterprises.
Audit of operating results during his tenure.
On the basis of financial revenue and expenditure audit and asset quality audit, audit the authenticity and integrity of the operating results of the person in charge of the enterprise during his term of office.
At the same time, audit and confirm the financial quantitative assessment indicators such as total profit, net profit, main business income, main business cost and period expenses from the beginning to the end of the term of office of the person in charge of the enterprise.